Kernel Holding Condensed Consolidated Financial Statements for 3 Months
Financial highlights
• Revenue was unchanged y-o-y at USD 607.5 million in Q3 FY2016, as growth in sales volumes in key businesses was offset by lower agriculture commodity prices. Export sales amounted to 98% of total revenue.
• EBITDA decreased 14% y-o-y to USD 98.9 million in Q3 FY2016, reflecting strong volume growth across segments amid lower sunflower seed crush margins.
• The sunflower oil segments delivered mixed performance. While sunflower oil sales were up by a notable 28% y-o-y, the crushing margin materially decreased as a result of above-average competition for raw materials this year vs. below-average competition a year ago. Both factors combined, the sunflower oil business contributed EBITDA of USD 37.3 million, 2x lower y-o-y.
• As we debottlenecked our grain transshipment facility in Ukraine, our grain sales reached a record 1.4 million tons, up 6% y-o-y, and transshipment volumes grew by 20% y-o-y. Solid growth in volumes amid margins that were comparable y-o-y allowed for reaching EBITDA of USD 36.4 million in Q3 FY2016, up 6% y-o-y.
• The farming segment’s EBITDA contribution was up 2.6x y-o-y to USD 32.7 million in Q3 FY2016 and reflected generally better operational performance from our crop growing division this season, driven by good crop yields amid lower production costs.
• A solid operating contribution mixed with beneficial foreign exchange impact from revaluation of intra-group liabilities resulted in net income of USD 92.3 million in Q3 FY2016 vs. USD 7.2 million a year ago.
• Net cash obtained from operating activities of USD 200.3 million in Q3 FY2016 was used for balance sheet strengthening and the acquisition of the assets of a 560,000 ton oilseed crushing facility through an assignment agreement with a Ukrainian bank.
• Net debt decreased 37% y-o-y to USD 303.4 million, with net debt to 12-month trailing EBITDA standing at 0.8x as of 31 March 2016.
Other highlights
• Starting 1 January 2016, VAT refunds on grain exports were reinstated in Ukraine, a change that is beneficial for the company’s farming and grain segments.
• On 25 February 2016, Kernel entered into binding documentation to acquire the assets, through an assignment agreement with a Ukrainian bank, of an oilseed crushing plant for USD 95.8 million, payable in arrears over five years. Commissioned in 2012, this world-class multi-seed facility has an installed crushing capacity of 560,000 tons of sunflower seed per year. The production plant, where Kernel currently operates through a tolling agreement, is located in Kirovohrad region of Ukraine and fits well into Kernel’s existing origination and marketing platform.
• On 15 April 2016, Kernel reported it had divested two small oilseed crushing plants located in southern Russia for RUB 800 million paid in cash by the buyer. The plants have a total crushing capacity of 200,000 tons of sunflower seed per year.
Комментарии